A major industrial complex in Arndell Park in Sydney’s outer west, has been leased for more than $1 million annually for five years by Raine & Horne Commercial Homebush principals, Thomas Muller and Duarte Figueira.
Sub-leased to a national tyre dealer, by BP Shopfitters, this standalone concrete panel warehouse, which is owned by property investment and funds management group 360 Capital, is approximately 11,423m².
“We are seeing more industrial warehouse sub-leases in the outer west at present, with companies continually evaluating their running costs against their bottom-line profitability. Regardless of time left on their lease, tenants are taking on a proactive approach and subletting if the need arises,” said Mr Muller.
“For instance, BP Shopfitters decided to rationalise back into their facility at Eastern Creek where it has some supplementary space.”
Likewise, the new tenant who entered into a direct 5-year lease was determined to continue operating from Arndell Park, which is an established industrial hub with tenants such as DHL, Versacold, Toll Transport, Linfox and ACCO Australia.
Mr Muller adds that this deal also proves once again that modern buildings that are fully functional and are priced competitively, will lease faster than older warehouses that don’t have the required functionality.
Clearances in the warehouse range from 7.9 to 9.1 metres, and there are also superb concrete hardstand areas that allow for truck parking and turning with separate parking allocated on-site for cars.
“The lease on this property was a pleasing result for all parties involved, each achieving their own individual objectives, which is a sensational result. The owners, 360 Capital, also extended their tenancy to five years with a strong covenant and BP Shopfitters eliminated its exposure for a building it no longer required,” says Mr Muller.
Thomas Muller believes that this is a good indicator of current market sentiment and believes that deals will continue to follow as a result.